Ibnsina Pharma Invests EGP 579 Million in H1 as It Nearly Doubles Storage Capacity
Ibnsina Pharma invested EGP 579 million during the first half of 2026 as Egypt’s largest pharmaceutical distributor accelerated spending on distribution centers, technology and logistics capacity to support continued market growth.
The bulk of the investment — around EGP 430 million — went into distribution centers, while EGP 58.5 million was directed to technology projects, EGP 57.6 million to vehicles and EGP 23.5 million to upgrades across existing facilities.
The spending comes as Ibnsina moves to significantly increase its warehousing capacity, targeting an expansion from 88,000 bales in 2025 to 157,000 by the end of 2026. The company also plans to add further capacity beyond that target as demand across Egypt’s pharmaceutical distribution market continues to grow.
A key part of the expansion strategy is the use of smart storage solutions designed to improve space utilization, raise operational efficiency and reduce costs across the distribution network.
The investment program is being carried out alongside stronger financial performance. Ibnsina’s consolidated net profit rose 31.5% year on year to EGP 511.3 million in the first half of 2026, while net sales increased to EGP 41.49 billion, up from EGP 35.05 billion a year earlier.
Despite the earnings growth, the company’s overall market share slipped to 29.1% by the end of June, compared with 31.1% in the same period of 2025.
Ibnsina’s latest investment push also follows a major financing agreement signed earlier this year with the European Bank for Reconstruction and Development, which is providing the company with a EGP 1.3 billion loan to support green capital expenditure for a new warehouse and related long-term working capital.
The planned warehouse is expected to incorporate resource-efficiency standards and, once completed, reduce annual carbon emissions by around 207 tonnes while saving nearly 16,905 cubic meters of water per year, according to the EBRD.
The first-half spending signals that Ibnsina is prioritizing physical and digital infrastructure at the same time: expanding warehousing and fleet capacity while continuing to invest in technology across its distribution network.
That approach could prove increasingly important in a market where scale alone is no longer enough. As pharmaceutical volumes rise, the company’s ability to move products faster, use warehouse space more efficiently and control logistics costs will be central to protecting margins and rebuilding market share.